Allied Corp., a multinational corporation, has spent $500 million on a new data center that allows the firm to transform raw data into useful information at a very high speed. This enables the smooth functioning of the firm's operations. In this case, the cost that Allied Corp. incurs is an example of _____.
A) retrieval cost
B) processing cost
C) acquisition cost
D) communication cost

Question

Quizplus · Accepted Answer

The cost that Allied Corp. incurs in building the data center is an example of processing cost. Processing cost refers to the cost incurred in transforming raw data into useful information.